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Transcript of Chapter 2: Development Processes and Organizations Product Design and Development Fourth Edition by...
Chapter 2: Development Processes and Organizations
Product Design and DevelopmentFourth Edition
by Karl T. Ulrich and Steven D. Eppinger
Chapter 1: Introduction
Chapter 3: Product Planning
Process Type Description Examples
Market Pull Team begins with market opportunity and selects technology to meet customer needs.
Fuel efficient cars
Technology Push Team begins with a new technology, then finds an appropriate market.
Velcro
Platform Products The team assumes that the new product will be built around an established technological subsystem.
Many new cars share the same chassis (Civic and CRV) (Nissan Ultima and Maxima –just laser blank different wheel base)
Process-Intensive Products
Characteristics of the product are highly constrained by the production process.
Coke
Customized Products
New products are slight variations of existing configurations.
Boiling water reactor pressure vessels
High-Risk Products Technical or market uncertainties create high risks of failure.
Nuclear power plants, drug delivery devices
Quick-Build Products
Rapid modeling and prototyping enables many design-build-test cycles.
Software
Complex Systems System must be decomposed into several subsystems and many components.
Space shuttle
Most designs are one of these two, with Market pull as the primary.
More than one of these may apply.
http://en.wikipedia.org/wiki/Technology_push
http://cleantechnica.com/files/2009/02/ls.jpg
Aerogel is a technology looking for commercial applications
https://www.besttvbuys.com/loudandclear/index.asp?did=978&refcode=lnc4
Aging Baby Boomers have created a number of marketing opportunities
http://www.pacific-bearing.com/default.aspx
Customized Products
While Pacific Bearing has a large number of stock choices, they also sell unique combinations and modifications of existing designs
Platform Products
http://www.unplggd.com/uimages/unplggd/james_dyson_sz.jpg
Dyson Vacuum cleaners are all built around the same “Cyclone”
Risk
Companies face many forms of risk which they need to report in an SEC filing.We will look at the issues raised by Medtronic (a medical device company) in their SEC filing.
Name the risks you expect Medtronic to list.
From the 2011 SEC 10K filing
• Market competition, Price Risk
• Supply Chain• Government Regulation• Reimbursement Rates• Quality Issues• Intellectual Property• Product Liability• Obamacare Tax
• R&D Pipeline• Customer Relations• Credit Markets• Clinical Trials• Business Acquisitions• Global Business• Tax Law (International)
PlanningPlanning
Product Development Process
ConceptDevelopment
ConceptDevelopment
System-LevelDesign
System-LevelDesign
DetailDesign
DetailDesign
Testing andRefinement
Testing andRefinement
ProductionRamp-Up
ProductionRamp-Up
Four Phases of Product Development
The product planning phase precedes the product development process.
GM sees Energy Crisis, needs better gas mileage
For transmissions, more speeds = better mileage
3 speed to 4 speedor
Continuously variable(GM Tech Center)
e.g. Find clutch area needed for full throttle upshift with current engine.(Division Level)
The Product Planning Process
Evaluate and Prioritize Projects
Allocate Resources and
Plan TimingPortfolioof
Projects
Multiple Projects
Complete Pre-Project PlanningProduct
PlanMission
Statements
Product Development
Process
Identify Opportunities
A Product Plan
1996 1997 1998 1999 2000
Hodaka
Lakes
H-Net
L-Net
Astro
595 6010 392 393
New Platforms
Derivatives
Improvements
Fundamentally New
Legend
Project
Product Release
Market Segmentation• A market segment is a group of actual or potential customers who can be
expected to respond in a similar way to a product or service offer. They want the same types of benefits or solutions to problems from a product or service, or they respond in a similar way to a company’s promotional programs.
• Successful segmentation:– Heterogeneity of wants and needs. Customers will actively seek and pay a premium
for products and services that better meet their wants/needs.– Customers do cluster into specific groups whose members’ needs are more similar to
those of other customers in that groups than they are to the needs of customers in other groups. (Tennis shoes)
– The costs of serving a customer in a segment must be no more than they are willing to pay.
When successful segmentation conditions exist, a firm that does not segment the market presents its competitors with an opportunity to enter the market.
Market Segment Map
1998 19991997 2000
Department
Workgroup
Personal
40 ppm network
$20k
30 ppm $10k
20 ppm $8k
40 ppm
$16k
65 ppm
$23k
55 ppm
$20k
25 ppm $9k
30 ppm $10k
25 ppm $10k
35 ppm $15k
20 ppm $7k
40 ppm $20k
60 ppm network
$35k
LegendXerox
product
competitor product
potential competitor
65 ppm network
$31k
Year ofRelease
Hodaka Project
Lakes Project Lakes
Extensions
Hodaka Project
Lakes Project Lakes
Extensions
Ma
rke
t S
eg
me
nt
Technology RoadmapFunctional Elements
Photo- receptor
Scanner Layout
Toner Type
Output Modes
User Interface
Cylindrical Drum
2D CCD Array w/Optical Reduc.
Keypad
3-Pitch Belt Photoreceptor
Full-Width, Linear Array without Optical Reduction
Touch Screen, Remote PC
Color: Paper, Fax, Scan, Local Network, Internet
Document Centre
220, 230
Document Centre
240, 255, 265
Document Centre 2XX
Hodaka Project
Lakes Project
Lakes Extensions
Document Centre 3XX
Next Platform
Technologies
n-Pitch Belt Photoreceptor
High Temperature
Low Melting Point
Low Melting Point, Low Emission
Touch Screen
Image Processing
Automatic Image Quality
Diagnostics On-Board Diagnostics
Remote-Dialup Diagnostics
Remote Repair
Time
1200 dpi600/1200 dpi 1800 dpi600 dpi
Monochrome: Paper, Fax, Scan, Local Network, Internet
Segmentation Examples
Cummins Peerless Pump
Class 3-4 Truck Industrial
Class 5-7 Truck Agricultural
School Bus Municipal
RV Chassis Chemical
Construction Equipment
Building Trades/New Construction
Dell computers http://www.dell.com/
Apple Computers http://store.apple.com/us/browse/home/shop_mac?mco=NzcwNjgzMA
Harley Davidson http://en.wikipedia.org/wiki/Harley-Davidson